SkyWest Airlines 2008 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2008 SkyWest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2008
(2) Long-term Debt (Continued)
At December 31, 2008, the three-month and six-month LIBOR rates were 1.43% and 1.75%,
respectively.
The aggregate amounts of principal maturities of long-term debt as of December 31, 2008 were as
follows (in thousands):
2009 .................................................. $ 129,783
2010 .................................................. 135,480
2011 .................................................. 139,108
2012 .................................................. 189,472
2013 .................................................. 137,861
Thereafter ............................................. 1,079,784
$1,811,488
As of December 31, 2008 and 2007, SkyWest Airlines had a $25 million line of credit. As of
December 31, 2008 and 2007, SkyWest Airlines had no amount outstanding under the facility. The
facility expires on March 31, 2009 and has a fixed interest rate of 4.01%.
As of December 31, 2008, the Company had $41.9 million in letters of credit and surety bonds
outstanding with various banks and surety institutions.
Certain of the Company’s long-term debt arrangements contain limitations on, among other things,
the sale or lease of assets and ratio of long-term debt to tangible net worth. As of December 31, 2008,
the Company was in compliance with all debt covenants or had received debt covenant waivers for any
default contained in its debt agreements. Management believes that in the absence of unusual
circumstances, the working capital available to the Company will be sufficient to meet the present
financial requirements, including expansion, capital expenditures, lease payments and debt service
obligations for at least the next 12 months.
(3) Income Taxes
The provision for income taxes includes the following components (in thousands):
Year ended December 31,
2008 2007 2006
Current tax provision (benefit):
Federal ............................... $ 5,360 $(14,355) $(41,914)
State ................................. (85) (736) (8,419)
5,275 (15,091) (50,333)
Deferred tax provision:
Federal ............................... 53,748 99,026 123,646
State ................................. 4,231 7,194 20,908
57,979 106,220 144,554
Provision for income taxes ................... $63,254 $ 91,129 $ 94,221
68